4# Key Revesal Bar Trading System

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A bullish Key Reversal is a price bar that
makes a new low for the current downtrend but closes above the previous bar's close; a bearish Key Reversal makes a new high for the current uptrend but closes below the previous bar's
close. In both cases, the market rejects the excursions into new extreme territory and suggests that the trend — at least for the short-term — has
reversed.

Very clearly the two examples in the center of the chart were excellent. However,
the other two examples failed miserably. Is there any filter we can add to make this type of trade safer? Yes with The
Stocastich oscillator.